This Is How Much You Should Have Saved at Every Age
Here’s how much money you should have saved at every age if you want to retire before 70.
In your 20s you should aim to save 25% of your gross pay — that includes 401(k) savings and retirement accounts. Just make sure your lifestyle doesn’t take up more than 75% of your pay.
In your 30s your savings should equal your annual salary — that includes money in your 401(k) and index funds.
By age 35, you should have twice your annual salary saved, and by 45, you should have 4 times that much saved.
By age 55, you should have 7 times your salary saved and, finally, by age 60, you should have 8 times your salary saved.
You should aim to have $1 million saved to retire. Although this list might seem daunting, it might be helpful to seek outside help to reach your goal. A financial planner might be a place to start — they can help you make short-term savings goals that will add up to your ideal number.
Saving for retirement might be a bit daunting and confusing, but a little bit of advice and planning can put you on the right track to a comfortable post-work life.